Glossary

What is an Accountant? An accountant is a financial expert who helps people and businesses manage their money. They keep track of income, expenses, and financial transactions, ensuring accuracy and financial health. Accountants also assist with tax preparation, budgeting, and provide guidance on financial decisions. They play a vital role in maintaining financial stability and…

What is an Accounting Software Consultant? An Accounting Software Consultant is an expert who specializes in helping individuals and businesses select, implement, and optimize accounting software systems. They assist in choosing the right software to meet specific financial needs, provide training, and ensure efficient usage of accounting software. Do Accounting Software Consultants need to be…

What is a Bookkeeper? A bookkeeper is someone who helps individuals or businesses keep track of their financial transactions, like income and expenses, to maintain organized and accurate financial records. They’re like the financial record-keepers who ensure your money matters stay in good order. What process does a Bookkeeper go through to become a Bookkeeper?…

What is Business Bookkeeping? Business bookkeeping is the systematic process of recording, organizing, and managing financial transactions and activities for a business. It involves tracking income, expenses, assets, and liabilities, ensuring accurate financial records for the business. Who Needs Business Bookkeeping? Businesses of all sizes, from small startups to large corporations, require business bookkeeping services….

What is a Business Start-up? A business start-up refers to a newly established company or enterprise in its early stages of operation. It typically involves the creation of a business entity with the aim of offering products or services to customers and generating revenue. What is Involved in a Business Start-up? Starting a business involves…

What is a Business Tax Return? A business tax return is a document filed with tax authorities, such as the Internal Revenue Service (IRS) in the United States, reporting a business’s income, expenses, and other financial activities over a specific period. It determines the business’s tax liability and eligibility for refunds or credits. Who Does…

What is a C Corp Tax Return? A C Corp tax return is a document filed with tax authorities, such as the Internal Revenue Service (IRS) in the United States, by a C Corporation. This return reports the corporation’s income, expenses, deductions, and credits, determining the corporation’s tax liability. C Corporations are separate legal entities,…

What is a Certified Audit? A certified audit is a thorough examination of an organization’s financial records and statements by a certified public accountant (CPA) or a certified auditing professional. The purpose is to ensure the accuracy and reliability of the financial information presented by the organization. The CPA provides an independent opinion on the…

What is a Certified Financial Planner (CFP)? A Certified Financial Planner (CFP) is a financial expert who specializes in helping individuals and families create comprehensive financial plans. They assess your financial situation, provide personalized guidance, and assist with goals like saving, investing, retirement planning, and more. CFPs are like financial coaches who help you achieve…

What is a Certified Fraud Examiner? A Certified Fraud Examiner (CFE) is a specialist who focuses on uncovering and preventing fraud in various contexts, such as businesses, organizations, or financial transactions. They are highly skilled in detecting fraudulent activities, investigating fraud cases, and implementing measures to prevent fraud from occurring. Does a Certified Fraud Examiner…

What is a Certified Payroll Processor (CPP)? A Certified Payroll Processor (CPP) is a specialist who is highly skilled in managing payroll tasks for businesses or organizations. They are experts in calculating employee wages, deductions, and taxes, ensuring that payroll processes comply with legal and regulatory requirements. CPPs play a crucial role in ensuring employees…

What is a CPA? A CPA, or Certified Public Accountant, is a financial expert who helps individuals and businesses with accounting, taxes, budgeting, and making sure money is handled correctly. They play a crucial role in ensuring that financial matters are accurate, compliant, and in accordance with financial rules and regulations. Why do CPA’s need…

What is a Certified Public Bookkeeper (CPB)? A Certified Public Bookkeeper (CPB) is a highly skilled professional specializing in bookkeeping and accounting. They are experts in maintaining accurate financial records, tracking income and expenses, and ensuring that financial data is well-organized and compliant with accounting standards. CPBs play a crucial role in preserving the integrity…

What is a Certified Tax Coach (CTC)?  A Certified Tax Coach (CTC) is a tax expert who specializes in providing strategic tax advice and proactive tax planning. They are highly skilled in finding legal ways to minimize your tax liability and maximize your tax benefits. CTCs are tax strategists who help you navigate the complex…

What is a Certified Tax Planner (CTP)?  A Certified Tax Planner (CTP) is a tax expert specializing in creating strategic tax plans to minimize tax liabilities and maximize tax benefits for individuals and businesses. They possess advanced knowledge of tax laws and regulations and use this expertise to develop personalized, proactive tax-saving strategies. Does someone…

What is a Certified Tax Strategist (CTS)?  A Certified Tax Strategist (CTS) is a tax expert specializing  in developing strategic tax plans and providing tailored advice to help individuals and businesses minimize tax liabilities and optimize tax benefits. They possess advanced tax laws and regulations knowledge and focus on creating comprehensive tax-saving strategies. Does someone…

What is DCAA Compliance? DCAA (Defense Contract Audit Agency) compliance refers to adhering to the accounting and financial regulations set forth by the Defense Contract Audit Agency, a U.S. government agency. DCAA compliance is crucial for businesses and organizations engaged in government contracts, particularly those related to defense and national security. Compliance ensures that the…

What is Divorce Tax Preparation? Divorce tax preparation involves handling the tax-related aspects of a divorce, including understanding the tax implications of alimony, child support, property division, and other financial matters related to the divorce settlement. It ensures both parties meet their tax obligations and maximizes their financial positions post-divorce. Who Does My Divorce Tax…

What is Elder Care Accounting? Elder care accounting involves managing the financial affairs of elderly individuals who might need assistance due to age-related issues or health concerns. It may encompass budgeting, estate planning, and ensuring financial stability for seniors, often in collaboration with legal professionals and healthcare providers. How Does Elder Care Accounting Differ from…

What is an EA (Enrolled Agent)?  An EA, or Enrolled Agent, is a tax expert who excels at helping you with your taxes. They know all about tax laws and can prepare and file your tax returns, find deductions to save money and deal with the IRS if you have tax issues. They’re professionals who…

What is Forensic Accounting? Forensic accounting involves investigating financial records, transactions, and statements to uncover fraud, embezzlement, or other financial misconduct. Forensic accountants utilize accounting, auditing, and investigative skills to analyze complex financial data for legal purposes, often in litigation, disputes, or criminal investigations. How Does Forensic Accounting Differ from Regular Accounting? While regular accounting…

What is Household Employer Payroll? Household Employer Payroll refers to the process of managing payroll obligations for individuals who employ domestic workers, such as nannies, caregivers, or housekeepers, in their private residences. It involves tasks like calculating wages, withholding taxes, and ensuring compliance with employment laws specific to domestic workers. How is Household Employer Payroll…

What is International Taxation? International taxation involves studying and applying tax laws related to cross-border financial activities. It addresses the complexities of taxation for individuals, businesses, and organizations engaging in international transactions or operating in multiple countries. International tax laws vary significantly between countries and can impact various aspects of financial planning and compliance. How…

What is Inventory Management? Inventory management is the systematic process of overseeing, organizing, and controlling a company’s inventory. It involves monitoring the stock levels of products, raw materials, and finished goods to ensure adequate supply for production or sales while minimizing holding costs and wastage. Effective inventory management is crucial for optimizing cash flow and…

What is an IRS Audit? An IRS audit is an official examination of an individual’s or business’s financial information and accounts to ensure accurate reporting and compliance with tax laws. The IRS reviews the taxpayer’s records and financial documents during an audit to verify the reported income, deductions, and credits. Who Does the Audit? IRS…

What is an IRS or State Tax Notice? An IRS or state tax notice is an official communication sent by the Internal Revenue Service (IRS) or state tax authorities to inform taxpayers about issues related to their tax return. These notices can include requests for additional information, notifications of owed taxes or penalties, or updates…

What is Medicare and Medicaid? Medicare and Medicaid are government-sponsored healthcare programs in the United States. Medicare provides health insurance for individuals aged 65 and older and certain younger individuals with disabilities. Medicaid, on the other hand, is a state and federally-funded program that offers healthcare coverage to eligible low-income individuals and families. What is…

What is Money Management? Money management is the strategic process of budgeting, investing, saving, and spending wisely to achieve financial goals. It involves making informed decisions about income, expenses, investments, and debt to maintain financial stability, grow wealth, and secure one’s financial future. What is Involved in Money Management? Money management involves creating a budget,…

What is a Nonprofit Tax Return? A nonprofit tax return, specifically Form 990 in the United States, is a document filed by nonprofit organizations with the Internal Revenue Service (IRS). This return provides detailed information about the organization’s finances, activities, and governance. Nonprofit tax returns are public records, offering transparency about the organization’s operations. Who…

What is an Outsourced CFO? An Outsourced CFO (Chief Financial Officer) is a financial expert or firm that provides high-level financial guidance and strategic planning services to businesses part-time or contractual. Outsourced CFOs offer financial leadership without the cost of hiring a full-time CFO, helping businesses make informed financial decisions and achieve their goals. What…

What is a Partnership Tax Return? A partnership tax return is a document filed with tax authorities, such as the Internal Revenue Service (IRS) in the United States, by a partnership. It reports the partnership’s income, deductions, credits, and other financial activities. Partnerships are pass-through entities, meaning profits and losses pass through to the partners,…

What is Payroll Processing? Payroll processing refers to systematically managing employee salaries, wages, bonuses, deductions, and net pay within an organization. It involves calculating employees’ earnings, withholding taxes and other deductions, and ensuring timely and accurate payment to employees. Who Does My Payroll Processing? Payroll processing is typically handled by specialized payroll professionals within a…

What is a Payroll Professional? A payroll professional is an expert responsible for managing an organization’s payroll. They handle tasks like calculating employee salaries, withholding taxes, and ensuring employees are paid accurately and on time. Payroll professionals ensure companies comply with tax laws and regulations related to employee compensation. Does Someone Need to Be Certified…

What is Personal Bookkeeping? Personal bookkeeping involves managing an individual’s financial records and transactions. It includes tracking income, expenses, savings, investments, and debts in an organized manner. Personal bookkeeping helps individuals maintain financial clarity and make informed decisions about their money. How Does Personal Bookkeeping Differ from Regular Bookkeeping? Personal bookkeeping focuses solely on an…

What is a PTIN? A PTIN, or Preparer Tax Identification Number, is a unique identification number issued by the IRS to tax professionals. Tax preparers use it when filing federal tax returns on behalf of their clients. PTINs are essential for tracking tax preparers and ensuring compliance with tax laws. Who Needs a PTIN? Tax…

What is an S Corp Tax Return? An S Corp tax return refers to the tax filing submitted by a corporation elected to be treated as an S Corporation for tax purposes in the United States. Unlike regular C Corporations, S Corporations pass their income, deductions, credits, and losses to their shareholders, who report these…

What is Sales Tax? Sales tax is a consumption tax imposed by the government on the sale of goods and services. It’s usually a percentage of the purchase price and is added to the total cost of products or services at the point of sale. Businesses collect customer sales tax and remit it to the…

What is an SBA Loan? An SBA (Small Business Administration) loan is a government-backed loan program designed to assist small businesses in accessing affordable financing. The SBA partners with lenders to provide loans with favorable terms, making it easier for small businesses to obtain funding for various purposes, such as startup costs, expansions, working capital,…

What is a Tax Advisor? A tax advisor is a financial expert who provides guidance and advice on tax-related matters. They help individuals and businesses navigate complex tax laws, maximize tax deductions, and ensure compliance with tax regulations. Tax advisors can offer strategic planning to minimize tax liabilities and optimize financial decisions. Does Someone Need…

What is a Tax Attorney? A Tax Attorney is a legal professional who specializes in tax law. They provide legal advice to individuals and businesses on complex tax matters, including IRS disputes, tax planning, and compliance with tax laws. Tax Attorneys have in-depth knowledge of both tax regulations and legal procedures. What Process Does a…

What is Tax Collection? Tax collection refers to the process by which tax authorities, such as the Internal Revenue Service (IRS) in the United States, collect owed taxes from individuals, businesses, or organizations. It involves various methods, such as issuing notices, levies, or liens to recover unpaid taxes. What Do I Do if I Receive…

What is Tax Planning? Tax planning involves strategically arranging your financial affairs to minimize your tax liability. It’s a proactive approach where individuals and businesses analyze their income, expenses, and investments to optimize their tax situation legally and efficiently. When Should I Seek Help with Tax Planning? It’s advisable to seek help with tax planning…

What is Tax Preparation? Tax preparation involves gathering, organizing, and filing the necessary documents and forms to complete your tax return. It includes calculating your taxable income, applying deductions and credits, and ensuring accurate and timely submission of your tax documents to the relevant tax authorities. When Should I Seek Help with Tax Preparation? You…

What is a Tax Preparer? A Tax Preparer is a professional who helps individuals and businesses prepare and file their tax returns. They are well-versed in tax laws and regulations and assist clients in accurately reporting their income, deductions, and credits to ensure compliance with tax requirements. Does a Tax Preparer Need to Be Certified…

What are Trust and Estate Tax Returns? Trust and estate tax returns are documents filed with tax authorities to report a trust or estate’s income, deductions, and other financial activities. These returns ensure compliance with tax laws and regulations and may involve federal and state filings. Who Does My Trust and Estate Tax Return? Trust…

What are Valuations and Appraisals? Valuations and appraisals are processes used to determine the monetary value of assets, properties, or businesses. Valuations typically refer to determining the worth of intangible assets like patents, trademarks, or a company’s reputation, whereas appraisals focus on tangible assets such as real estate, machinery, or inventory. These assessments are crucial…